Financial Awareness Quiz 73 –

Que. 1

The Central Board of Direct Taxes (CBDT) on February 7 signed how many unilateral Advance Pricing Agreements (APAs)?

1.

6

2.

4

3.

9

4.

5

5.

3

Solution

Answer: The Central Board of Direct Taxes under the Department of Revenue, Union Ministry of Finance has entered into four more unilateral Advance Pricing Agreements (APAs). These four APAs are related to Manufacturing, Financial and Information Technology sectors. They cover international transactions such as Contract Manufacturing, Software Development Services and IT Enabled Services. With this, the total number of APAs entered into by the CBDT has reached 130. It includes 122 Unilateral APAs and 8 bilateral APAs. In the current financial year (2016-17), total 66 APAs (5 bilateral APAs and 61 unilateral APAs) were signed.

The Food and Agricultural Organization (FAO) has called for an international collaboration on ________ to curb threat to global supplies.

1.

Black leaf

2.

Rice blast

3.

Stem rust

4.

Wheat leaf rust

5.

Loose smut

Solution

Answer:

FAO has called for International collaboration on wheat rust to curb threat to global supplies. According to studies produced by scientists in collaboration with FAO, wheat in Africa, Asia and Europe is increasingly threatened by fresh groups of wheat rust.

Which bank has up with Cigna TTK to market the insurer’s products in the bank’s branches across the entire country?

1.

SBI

2.

ICICI

3.

Axis

4.

PNB

5.

None of the above

Solution

Answer: Public sector lender Bank of Maharashtra has partnered with insurance company Cigna TTK Health to market the insurer’s products in the bank’s branches across the entire country. Under the agreement, the bank will offer the all of Cigna TTK’s superior health insurance products to its 2 crore customers through its network of over 1,896 branches, its 14,000 bank employees across the country as well as through its digital platforms.

Solution

Answer: India’s third largest private bank, Axis Bank has tied up with Earthport Plc, a cross-border payment network, to enable faster outbound cross-border payments for its customers through Earthport’s state-of-the-art global payments network. Axis Bank has become the first bank in India to connect with Earthport’s global payments network, which spans over 60 countries.

Ujjivan Small Finance Bank has started its operations in Bengaluru on February 6 with ________ pilot branches.

1.

4

2.

6

3.

5

4.

9

5.

7

Solution

Answer: Ujjivan Small Finance Bank officially started its operation on February 6, 2017 with 5 pilot branches in Bengaluru. Samit Ghosh is the MD and CEO of the Ujjivan Small Finance Bank. The five pilot branches of the Ujjivan SFB would offer full services to its customers. The Small Finance Bank will test its technology, channels, people and processes for a period of one month as a part of its pilot launch.

________ is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market.

1.

Commodity

2.

Derivatives

3.

Bond

4.

Money

5.

Spot

Solution

Answer:

The bond market (also debt market or credit market) is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market. This is usually in the form of bonds, but it may include notes, bills, and so on. Its primary goal is to provide long-term funding for public and private expenditures.

The Headquarters of Industrial Finance Corporation of India(IFCI) ________.

1.

Mumbai

2.

New Delhi

3.

Chennai

4.

Bengaluru

5.

Hyderabad

Solution

Answer: The Headquarters of IFCI is New Delhi. IFCI, previously Industrial Finance Corporation of India, is an Indian government owned development bank to cater to the long-term finance needs of the industrial sector. It was the first development finance institution established by the Indian government after independence. Until the establishment of ICICI in 1991, IFCI remained solely responsible for implementation of the government's industrial policy initiatives.

________ is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages and selling them to third party investors as securities.

1.

Hedge

2.

Bought out deal

3.

Open Buy Back

4.

Securitization

5.

None of the above

Solution

Answer: Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations (or other non-debt assets which generate receivables) and selling their related cash flows to third party investors as securities, which may be described as bonds, pass-through securities, or collateralized debt obligations (CDOs). Investors are repaid from the principal and interest cash flows collected from the underlying debt and redistributed through the capital structure of the new financing. Securities backed by mortgage receivables are called mortgage-backed securities (MBS), while those backed by other types of receivables are asset-backed securities (ABS).

Solution

Answer: ​Power Finance Corporation was founded in July 1986. It is the financial back bone of Indian Power Sector. Net worth of the company in the year 2007-2008 was 8688 Crore Indian Rupees. Initially wholly owned by the Govt. of India, the company issued an IPO in January, 2007. The issue was oversubscribed by over 76 times, which is the largest for an IPO of any Indian Company in recent times. PFC is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The company has been conferred with many prestigious awards, the latest of which is "KPMG-Infrastructure Today Award 2008" for its contribution in development of power sector. It is also an ISO 9001:2000 certified company and enjoys the status of Navratna Company in India.